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Private Marketplace (PMP) – Where we’re headed?

Private Marketplace (PMP)
As the digital industry looks for a solution to ad fraud, more sellers and buyers tend to engage in a private marketplace where only high-quality publishers provide their ad inventory to selected advertisers.

Programmatic advertising is an ever-evolving landscape. You all remember how we started? From direct sales to Ad networks to Ad Exchanges, and we’re still growing. But what ignites the change every time? 

We say, Inability

When Ad networks found it difficult to deliver personalized ads at scale, Ad Exchanges were born. Similarly, to dodge the impotence of ‘Real-time Bidding’ on open exchanges, Private Marketplace (PMP) was developed. 

The main difference between other auctions and Private Marketplace is that it is an invite only auction where the publishers invite advertisers to bid on their inventories. Due to this “invite only” feature, this auction is termed as a private exchange. The publisher is well aware of the targeted buyers and the inventories (generally, premium) are sold only to them at higher prices (CPMs).

However, there are a few more reasons to develop a private exchange such as:

Increased ad fraud cases,

Complaints of hidden vendor charges,

Mishaps in targeting correct audience, and,

Inability to connect a handful of buyers with a publisher.

As PMPs are set to eliminate these drawbacks, spending on Private MarketPlaces continue to increase.

As the digital industry looks for a solution to ad fraud, more sellers and buyers tend to engage in a private marketplace where only high-quality publishers provide their ad inventory to selected advertisers.

Let’s start the basics.

Difference between open auction (Open-RTB) and Private Marketplace (PMP)

In a Private Marketplace, publishers have better control on entities related to ad inventory; be it kind of buyer, advertiser, and the type of creatives that will be displayed on their site. Private marketplace guarantees higher CPM as the publisher, advertiser, and the campaigns are premium and thus offer the highest quality of ad inventory.

It provides transparency in publisher & advertiser relationship. Advertisers are fully aware of what they are buying and publishers are aware who they are targeting; which is not possible in direct open auctions.

In fact, as per survey by eMarketer, Private Marketplaces will outshine open-RTB buying by the year 2019.

Benefits of a Private Marketplace (PMP)

Private Marketplaces have significantly developed and will account for more than 40% of the total programmatic ad spend and is expected to reach more than 50% by the end of this year. PMP offers benefits to both publishers and advertisers. 

  • Provides transparency for both publishers and advertisers.
  • Offers brand with the opportunity to have a clear control of where their ads are being promoted instead of being placed everywhere.
  • PMP auctions allow a new way for publishers to fill their ad space. Instead of relying on the sales team, publishers can connect with the selling platform to make their inventory available to the selected advertisers.
  • PMP ensures premium inventory and entities and thus assures of brand safety.
  • PMP allows access to unique first party audience data to advertisers.
  • Serves programmatic efficiency by allowing advertisers to set new buys on top websites quickly and effectively on specifically segmented vertical.
  • PMP provide higher quality ad inventory.
  • PMP assure of less fraud and unacceptable web traffic.
  • Offer higher ROI for ad inventories.

Also read: What is a DMP?

How does the future look for PMP?

Though the traditional PMP are there for a long time now, however publishers, advertisers and platforms need to get on board quickly to ensure they are well equipped with tools and resources to adapt with the future changes.

PMPs are on an approach of better organizing themselves for supply with efficient solutions to digital ecosystem. Along with traditional PMPs, there are multi-publisher PMPs available for brands, buyers, and agencies that cover the solution to pain areas of traditional PMPs.

Buyers spend most of their time on managing and organizing deals individually, multi-publisher PMPs help in increasing efficiency by saving buyers time by creating single deal ID, allows instant scaling of inventory, and offer customization based on buyer’s needs.

The future is exceptionally perky for Private Marketplaces. At Automatad, we offer a quality Private MarketPlace (PMP) where premium inventories are traded at scale between the verified and authentic buyers and publishers. Contact us to get more info on Private Marketplaces (PMPs). 

Automatad Team

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